Correlation Between Intrepid Endurance and Jhancock Disciplined

Can any of the company-specific risk be diversified away by investing in both Intrepid Endurance and Jhancock Disciplined at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Intrepid Endurance and Jhancock Disciplined into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intrepid Endurance Fund and Jhancock Disciplined Value, you can compare the effects of market volatilities on Intrepid Endurance and Jhancock Disciplined and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Intrepid Endurance with a short position of Jhancock Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrepid Endurance and Jhancock Disciplined.

Diversification Opportunities for Intrepid Endurance and Jhancock Disciplined

0.25

Correlation Coefficient

Intrepid Endurance  Jhancock Disciplined

Modest diversification

The 3 months correlation between Intrepid and Jhancock is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Endurance Fund and Jhancock Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Disciplined and Intrepid Endurance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Intrepid Endurance Fund are associated (or correlated) with Jhancock Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Disciplined has no effect on the direction of Intrepid Endurance i.e., Intrepid Endurance and Jhancock Disciplined go up and down completely randomly.

Pair Corralation between Intrepid Endurance and Jhancock Disciplined

Assuming the 90 days horizon Intrepid Endurance is expected to generate 4.27 times less return on investment than Jhancock Disciplined. In addition to that, Intrepid Endurance is 1.02 times more volatile than Jhancock Disciplined Value. It trades about 0.04 of its total potential returns per unit of risk. Jhancock Disciplined Value is currently generating about 0.17 per unit of volatility. If you would invest  2,530  in Jhancock Disciplined Value on August 31, 2024 and sell it today you would earn a total of  221.00  from holding Jhancock Disciplined Value or generate 8.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

Intrepid Endurance Fund  vs.  Jhancock Disciplined Value

Intrepid Endurance

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Intrepid Endurance Fund are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Intrepid Endurance is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jhancock Disciplined

Risk-Adjusted Performance

13 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jhancock Disciplined Value are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jhancock Disciplined may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Intrepid Endurance and Jhancock Disciplined

The main advantage of trading using opposite Intrepid Endurance and Jhancock Disciplined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrepid Endurance position performs unexpectedly, Jhancock Disciplined can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jhancock Disciplined will offset losses from the drop in Jhancock Disciplined's long position.

The idea behind Intrepid Endurance Fund and Jhancock Disciplined Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.